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    Conversion Ratio and Conversion Price

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    Diamond Drill Inc. has 150,000 shares and 15,000 warrants outstanding. A warrant holder can purchase a new share of stock for five warrants and $5.00 per warrant. The stock is currently selling for $27 per share.

    a) The holder of a $1,000 face value bond can exchange the bond any time for 25 shares of stock. The conversion ratio is:
    b) The holder of a $1,000 face value bond can exchange the bond any time for 25 shares of stock. The conversion price is:

    © BrainMass Inc. brainmass.com March 4, 2021, 10:29 pm ad1c9bdddf
    https://brainmass.com/business/financial-ratios/conversion-ratio-conversion-price-335335

    Solution Summary

    The solution explains how to calculate the conversion ratio and conversion price.

    $2.49

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